IT hardware lobby group Manufacturers’ Association of Information Technology (MAIT) is hopeful for GST bill passage in Rajya Sabha this week. The GST Bill, which is pending for several years, is likely to be approved by the Rajya Sabha as the government has listed the Bill under this week’s agenda for consideration.
Government is expected to get support for the passage of proposed GST Bill in the Upper House. It is a destination-based tax that will reduce the tussle amongst the origin state and the destination state, often seen to be warring to appropriate the same tax transaction, the hardware body in a statement said.
“With the government having agreed to do away with one per cent additional tax and fully compensate the states for losses in tax revenues for five years, MAIT is hopeful the government would get the necessary support for passage of the GST Bill in the Upper House,”ET report quoted Anwar Shirpurwala, Executive Director, MAIT as saying.
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The new law would also put to rest the ambiguity in the treatment of ‘intangibles’ such as software and the concept of dual levy of taxes.
“The GST regime will herald a new beginning in the indirect taxation landscape of modern India, paving the way for a simplified and homogenous tax structure for goods and services,” Nitin Kunkolienker, vice president, MAIT and director-Corporate Affairs, Smartlink Network Systems told ET.
The proposed Bill will make the concept of deemed manufacture and/or MRP valuation redundant that could also spare businesses of the often long-drawn litigation process. The GST regime would assure a break-away from the rigours of maintenance of such voluminous documentation,” Kunkolienker added.
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In the current scenario, the states’ VAT laws warrant submission of myriad documentation, thereby impeding free movement of goods and Central Sales Tax Law also mandates issuance of diverse statutory forms.
The benefits under the government’s flagship program ‘Make in India’ should continue to enjoy patronage under the GST regime, the body said, adding that businesses have made substantial investments and also given that fruition of such schemes is realized over a period of time.